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Achieving Lean Objectives through RFID: A Simulation‐Based Assessment *
Author(s) -
Chongwatpol Jongsawas,
Sharda Ramesh
Publication year - 2013
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/deci.12007
Subject(s) - barcode , lean manufacturing , visibility , identification (biology) , radio frequency identification , computer science , process (computing) , lean laboratory , process management , manufacturing engineering , business , discrete event simulation , risk analysis (engineering) , marketing , computer security , engineering , simulation , software system , optics , biology , programming language , software construction , physics , botany , software , operating system
Lean concepts in manufacturing have focused on elimination of wastes within the business processes. This study investigates whether addition of radio frequency identification (RFID) technologies in the manufacturing process can complement Lean manufacturing. Specifically, will more accurate information from RFID‐based solutions help achieve the goals of Lean initiatives in manufacturing plant performance and, if yes, in what specific ways? The analysis is based on a comparison of the following three automatic identification technologies: existing (one‐dimensional) 1D barcode, 2D barcode, and the use of RFID in a real job‐shop environment where items are manufactured for meeting actual demand and also future forecast demand. We analyze the effect of information visibility in these settings by examining the various types of wastes that are typically addressed in Lean initiatives. The results of a discrete‐event simulation suggest that employing RFID in Lean manufacturing initiatives can reduce some wastes but not necessarily all types of waste. We observe an increase in overproduction waste in our setting, although other wastes are reduced with improved information visibility. Overall, our results indicate that manufacturing organizations should explore information visibility through RFID to enhance their Lean initiatives.